Presented at the roundtable discussion, "International Finance in Latin America: Governance, Reform, and Volatility," XXVIII International Congress of the Latin American Studies Association, Rio de Janeiro, June 11, 2009.

Abstract:

In all, incorporating Brazil on its terms into established institutions of global governance will be challenging, but also worth the effort. The U.S. and the global North are well advised in the short-run to encourage the participation of Brazil in the various ad hoc global gatherings (e.g., the G-20 group) dealing with the financial crisis. For the long-run, the goal should be to integrate Brazil as a partner into reformed multilateral institutions (in finance, trade, and regulation) as a means of assuring more stable global growth on the basis of more inclusive global management. To understand the reasoning behind this recommendation, it is well to consider three separate issues: 1) the areas of common interests in foreign economic policy between Brazil and the transatlantic community; 2) the roots of Brazil's traditional divergences with the North; and 3) the domestic dynamics in Brazil that are leading to a change in its world view. These issues are considered in turn in this paper, followed by recommendations on how to incorporate Brazil more effectively into a transatlantic partnership.